Incident: On May 23, the company announced the termination of the issuance of shares to acquire Shanghai Tuochang and instead used cash. The company will raise 528 million yuan of its own capital to acquire 80% of Tuochang Information's shares. Shanghai Tuochang promised to achieve net profit of not less than 6,000, 7500, and 88 million yuan in 2017-2019. Performance proponents will purchase the company's shares in two installments of not less than 40 million yuan within 30 months and 42 months after receiving the second payment (20 working days after the delivery date), respectively. Comment: Cash acquisition strengthens the mobile marketing platform, without changing the logic of continuous optimism in the medium to long term: the company suspended trading and proposed to acquire Piaochang in the medium to long term. Due to market changes and the company's own integration plan, the company stopped issuing additional cash and used 528 million yuan of self-raised cash to acquire Chang Si, which shows that the company persists in advancing the integrated marketing group strategy and continues to strengthen the company's strengthened layout in emerging business fields and digital marketing sectors. The target party promised to achieve net profit of not less than 6000, 75, 88 million yuan in 2017-2019, corresponding to net profit of 43.15 million yuan in 2016. The performance growth rate has thus been achieved: 39%, 25%, and 18%. The acquisition consideration corresponds to the 2017 performance commitment, and the valuation is reasonable. The performance pledger of this acquisition will purchase a total of 80 million yuan of the company's shares within 30 and 42 months after receiving the second payment, accounting for about 15% of the consideration amount of this payment, which is conducive to binding management and ensuring the steady operation of the target. Currently, the company has sufficient monetary capital of 1,192 billion yuan, which is beneficial to boosting the company's performance through cash acquisitions. There was a correction in the media (-23.43%), marketing sector (-18.39%), and general market correction during the suspension of trading. The company has recovered and fallen by nearly 20% since the resumption of trading on the 25th. We believe that the correction is in place. Considering the company's current cash acquisition, integrated marketing continues to advance steadily. High-quality client-side brand customers accumulate advantages, integrate market big data resources on the data side, and accumulate advantages of high-quality media resources on the channel side. There is no change to the logic of medium- to long-term optimism. Shanghai Tuochang: Deeply involved in game and e-commerce applications, strengthening the integration and collaboration of customers, resources and media resources: Shanghai Tuochang is rooted in the touch technology platform system - a leader in the development of the Chinese game industry. Based on rich industry resource reserves, the company mainly provides mobile effects promotion services for game and e-commerce application developers. It has a rich Internet advertising marketing matrix including advertising management platforms, DSP, SSP, and DMP. It has successively promoted and achieved good results for “Clash of Clans”, Qin Shimingyue, Vipshop, Pepper Live, etc. . In the context of the rapid development of the mobile marketing industry (the market size exceeded 130 billion dollars in 2016, the growth rate reached 126%), the client is expected to expand the company's customer development in the game field using ChangSi's rich customer resources in the gaming field. At the same time, the company will be able to obtain objective and large user data and enhance mobile marketing plan design capabilities, fully benefiting from the marketing industry still maintaining a rapid growth trend. The channel side further strengthens advertising management platforms and media platforms, thus fully complementing the province and the media side, thereby fully complementing the media side of the province, strengthening the overall customer service capabilities and improving service effectiveness . Profit forecast and valuation: We expect the company's net profit for 2017-2019 to be 755, 8.71, and 1,027 million yuan, respectively, and the corresponding EPS is 0.56/0.65/0.77 yuan, respectively, corresponding to the current stock price 20, 17, and 15 times PE. Continue to be optimistic about the company as an integrated marketing leader, enjoy the dividends of continuous industry growth through endogenous and epitaxial development, and maintain a highly recommended rating. Risk warning: Outreach is not progressing smoothly, consolidation risks, and industry growth is slowing down.